Election special: Which party will be best for your pound?

The phoney war is over. The date is set. Voters will have their own views on politicians and their policies and these may change as the General Election campaign hots up over the next four weeks.

But if the pound in your pocket had a vote of its own, which party would be best? Which policies will have the biggest impact on your financial health and wellbeing during the life of the next Parliament?

Ahead of the launch of their Election manifestos this week, we cast an eye over the policy pledges of the three main parties:

Taxation

Labour: After the introduction of the new 50 per cent income tax rate last week on earnings or pensions of more than £150,000 a year, Labour remain committed to higher taxes on those who earn more. They are pressing ahead with plans to stop higher-rate tax relief on pension contributions for those earning £150,000 or more (£130,000 if the employer pays into their pension).

A freezing of tax thresholds will see a growing proportion of taxpayers slipping into the 40 per cent bracket. Labour will also freeze the threshold for inheritance tax at £325,000, scrapping previous pledges to increase this.

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Conservatives: The Tories believe their Election trump card is a pledge to dilute Labour's planned increases in National Insurance from next April. This would see the tax paid by most employers and employees rise by one percentage point, but it has been branded a 'tax on jobs' by the Conservatives.

Other key promises include raising the threshold at which inheritance tax takes effect from £325,000 to £1 million and a permanent increase in the stamp duty exemption for first-time buyers to £250,000. The party is expected shortly to unveil more detail on plans for a tax break for married couples. Some of this will be paid for by cuts in tax credits. There are no plans to reverse Labour taxes on higher earners in the short term.

Liberal Democrats: They want to see a higher personal allowance that would effectively scrap tax on the first £10,000 of income for all age groups. This translates to an annual income tax cut of up to £700.

But this will be paid for with a range of new taxes, including an annual 'mansion tax' of one per cent on homes worth £2 million or more and extra taxes on airlines. The better off will be hit by moves to cut the annual capital gains tax allowance from £10,100 to £2,000. And the CGT rate would rise from 18 per cent to a taxpayer's personal rate.

Anyone paying 40 per cent tax could be worse off under plans to remove higher-rate-tax relief from pensions entirely. The Lib Dems are also promising pilot schemes to replace Council Tax with a local income tax, but only in areas that vote to accept it.

Financial Mail verdict: For lower to middle earners, the Liberal Democrat income tax proposals are appealing. For middle-to-high earners, Tory promises to scrap rises in NI and to protect inheritances will both hit the mark.

Families

Labour: Continuing to target State support for lower-income families through an extension of tax credits. The child tax credit will rise by £4 a week from 2012 for families with children aged up to two. And Labour are building on the five million Child Trust Funds already opened through payments of an extra £100 a year into the accounts of disabled children.

Conservatives: Want to rein in State spending by stopping tax credits for those families with a household income of £50,000 or more. They will cap payments into the CTF, with only children in the poorest third of households, or with a disability, qualifying for a State contribution.

Liberal Democrats: Committed to continuing with tax credits but want to cut uncertainty by fixing payments to each family for six months at a time. They want to abolish the CTF, saying this would free money for investment in schools and scrapping university tuition fees.

Financial Mail verdict: Any change of government will see the emphasis move away from credits. Lib Dem promises on tuition fees will strike a chord in families with teenagers while parents with younger children may prefer Labour's targeted tax credits.

Pensions

Labour: If returned to power they will allow the State pension to rise in line with earnings from 2012. They have pledged to review the laws that allow companies to force workers to retire, giving older people the choice to carry on working. Labour have already committed to pay at least £250 as a winter fuel payment to all pensioner households, rising to £400 for those aged over 80.

Conservatives: Would also link the State pension to earnings but will review the State retirement age, saving money by possibly bringing forward the next change in the pension age. This is due to rise from 65 to 66 in 2026 but could start as early as 2016 under Tory plans. The Conservatives have also promised a review of public sector pensions, including capping the most generous of these.

The Tories will allow people more choice over how they use their retirement savings by scrapping the rules that force those with a private pension to buy an annuity by age 75. And they have promised compensation for savers with Equitable Life.

Liberal Democrats: Have pledged to link rises in the State pension to increases in earnings immediately and say they will also scrap the default retirement age. All those aged 60 or over are guaranteed a winter fuel payment of at least £200. And new rules will force energy companies to offer their best rates to poorer pensioners.

Why Child Trust Funds get my vote

Teacher Alexandra Stokes, 28, is watching the Election campaign with interest to weigh up the parties' views on the Child Trust Fund.

She and husband Richard, also 28, have a daughter Ellie, 3, and Alexandra is due to give birth to their second child any day.

Ellie already has a Child Trust Fund with Nationwide Building Society. She received the initial £250 State contribution to open the account and like many other families Alexandra and Richard have also paid in extra money. And their new baby will be born in time to qualify for a trust fund and the initial State contribution.

But any further State top-ups into the Child Trust Fund, due when the children are seven and possibly again at 11, will depend on who wins the Election.

Alexandra, who is on maternity leave, says: 'I was lucky in that my parents saved for me and there was a little nest egg to help me go to university.

'I would like to think the Child Trust Fund would help many other children in the same way. It helps families think about saving who might otherwise not get round to it.'

Alexandra, who lives in Oxfordshire, says: 'I can see how the trust fund will be useful in schools as a way to get children engaged about money and talking about savings.'

Savings

Labour: Are pressing ahead with plans to increase the annual Isa allowance in line with inflation from next April. There will be a new 'savings gateway' account from July 2010, giving those on low incomes a 50p boost for every pound they save up to a maximum of £25 a month.

Conservatives: Have endorsed the higher Isa limits and agree with Government plans to enroll automatically lower and middle-income savers into workplace pensions. They also want to introduce a new Consumer Protection Agency and have promised legislation to cap excessive credit card rates. Longer term, they aim to reverse the £5 billion-a-year impact of Labour's 1997 raid on pension funds when the dividend tax credit was abolished.

Liberal Democrats: Committed to splitting the Post Office from Royal Mail, with subsidies for rural branches, and developing a Post Bank to become a new force on the High Street. They are also promising to clamp down on unfair bank charges and separate risky banking activities from everyday savings and lending.

Financial Mail verdict: Continued support for Isas is welcome and many readers will warm to the Lib Dems' vision of a revitalised Post Office. The Tories' plan to restore dividend tax credits to pension funds could be a genuine vote winner, but looks a distant dream, given the state of the public finances. Labour's record on savings is poor.

Long-term care

Labour: Have pledged to offer free personal care at home from 2011, but only 'for those in greatest need'. It is still unclear how this will be funded, or how many people will benefit. They published a White Paper last month, setting out plans for a National Care Service. From 2014 they say residential care will be paid for by the State after someone has been in a care home for two years. But Labour have put off announcing how this should be paid for, instead planning to set up another Royal Commission after the Election.

Conservatives: Want to give older people more choice in how they are cared for, including giving them control of their own care budgets so they can buy their own help. They promise a 'home protection scheme' to prevent forced home sales. Older people, while healthy, could voluntarily choose to make an £8,000 payment into the scheme, entitling them to free care if they needed it in later life.

Liberal Democrats: Calling for a cross-party commission that can come up with a consensus on how care should be funded. They want to see a partnership model where State and individuals pay, but underpinned by a guarantee of some State support.

Financial Mail verdict: Labour have repeated their 1997 trick of calling for a Royal Commission, having ignored the first one's findings and then done precious little on care in the intervening 12 years. All three parties are loath to give guarantees of free care, fearful of the cost.